An investor pays $3 to buy a call option on MSFT with a strike price of $45, and receives $2 for selling a call option on MSFT with a strike price of $49. The two options have the same expiration date. At expiration, MSFT is selling for $55. What is the investor’s per share profit or loss?
An investor pays $3 to buy a call option on MSFT with a strike price of $45, and receives $2 for selling a call option on MSFT with a strike price of $49. The two options have the same expiration date. At expiration, MSFT is selling for $55. What is the investor’s per share profit or loss?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An investor pays $3 to buy a call option on MSFT with a strike price of $45, and receives $2 for selling a call option on MSFT with a strike price of $49. The two options have the same expiration date. At expiration, MSFT is selling for $55. What is the investor’s per share profit or loss?
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